FBT is on expenses incurred on behalf of employees. this is what I have understood. If motor car is used by the proprietor for his bussiness and not used by the employee,(especially when there is no employee at all) will there be any FBT. Hope I am putting my ? clear.
quote:(from IT act)
1)any privilege, service, facility or amenity, directly or indirectly, provided by an employer, whether by way of reimbursement or otherwise, to his employees (including former employee or employees);
2)The fringe benefits shall be deemed to have been provided by the employer to his employees, if the employer has, in the course of his business or profession (including any activity whether or not such activity is carried on with the object of deriving income, profits or gains) incurred any expense on,
Question: (1) should there be a necessity to incur exp on employees "or"
(2) with or without employees, will the expenses classified shall be deemed to liable for FBT.
Hope I am putting my ? clear.
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FBT
Replies (6)
If there are no employees question FBT shall not arise.
dear friend i think answer Mr.Saibaburao is correct.
hai,
Kindly read this as given by Bhishnu.
Hi friends i am posting the definitions of fringe benefit tax under
115W. In this Chapter, unless the context otherwise requires,
(a) employer means,
(i) a company;
(ii) a firm;
86[(iii) an association of persons or a body of individuals, whether incorporated or not;]
(iv) a local authority; and
(v) every artificial juridical person, not falling within any of the preceding sub-clauses:
87[Provided that any person eligible for exemption under clause (23C) of section 10 or registered under section 12AA or a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951) shall not be deemed to be an employer for the purposes of this Chapter;]
(b) fringe benefit tax or tax means the tax chargeable under section 115WA
hence proprietory concerns need not pay FBT even if employees are there
good to note.
ravi sankar
hai,
Kindly read this as given by Bhishnu.
Hi friends i am posting the definitions of fringe benefit tax under
115W. In this Chapter, unless the context otherwise requires,
(a) employer means,
(i) a company;
(ii) a firm;
86[(iii) an association of persons or a body of individuals, whether incorporated or not;]
(iv) a local authority; and
(v) every artificial juridical person, not falling within any of the preceding sub-clauses:
87[Provided that any person eligible for exemption under clause (23C) of section 10 or registered under section 12AA or a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951) shall not be deemed to be an employer for the purposes of this Chapter;]
(b) fringe benefit tax or tax means the tax chargeable under section 115WA
hence proprietory concerns need not pay FBT even if employees are there
good to note.
ravi sankar
Good Day!!
Ravi Sankar has pointed out the correct definition, Individuals are not liable for FBT and hence there is no question of whether He has employed staff or not.
also here's just an additional probable question, if its a Partnership firm and the partner uses the car for Business purpose then is FBT applicable if there are no employees?
Please Reply,
Regards
Sunil
Keep Smiling
dear
since definition of company for FBT purposes includes "firm' , FBT will be payable on the classified exps even if no employees (according to the 2nd proviso to sec115 which reads as follows)
)The fringe benefits shall be deemed to have been provided by the employer to his employees, if the employer has, in the course of his business or profession (including any activity whether or not such activity is carried on with the object of deriving income, profits or gains) incurred any expense on,
hope it is clear for you.
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